GBP/USD Price Forecast – British Pound Pulls Back From Same Resistance

The British pound has gone back and forth during the course of the trading session on Thursday to reach towards the highs again. At this point time, the market is likely to see the 1.42 level as a massive barrier that once overcome, could send the market much higher. At this point, the market is likely to go looking towards the 1.45 handle, and as a result I think a lot of money would flow into the market.

GBP/USD Video 28.05.21

To the downside, the 1.40 handle is going to continue to be massive support and is even being supported by the 50 day EMA that is reaching above it. Ultimately, I think that the British pound is trying to find its way higher, but it is clear that there is a lot of supply at the 1.42 region. Ultimately, I do believe that this is a market that will not only reach higher but continue to benefit from the weakening US dollar.

However, the US dollar itself is a bit oversold so I think that this is a market that continues to see hesitation, but eventually the fundamentals will continue to work against it if we see more of a “risk on” type of situation as we continue to see the reopening trade take front and center attention. However, if we were to turn around a break down below the 1.40 level, then it is possible that we could go back towards the 1.3750 handle where there has been a massive amount of support previously. At this point, I am not really interested in shorting this market, I think that given enough time we will see the buyers overtake everything.

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